| If there is one tax that seems to be a concern for | | | | over the course of years. |
| property owners that are planning to sell their property, | | | | 4. Deferred Sales Trust |
| it is the capital gains tax. This is a tax that is placed on | | | | The Trust receives your profits from the sale of your |
| profits that result from the sale of assets such as | | | | property or assets. Your taxes will be deferred for the |
| property, stocks, and bonds. One common attribute to | | | | duration of the installment note. |
| the capital gains tax is that it will take a huge chunk of | | | | 5. 1031 Exchange |
| your profits from the sale on your property. | | | | The 1031 Exchange allows you to defer by exchanging |
| So your primary object, as a seller, should be to defer | | | | your property for "like kind" property. This typically |
| or reduce this tax as much as possible. Here are six | | | | applies to property only. |
| techniques that you can use to defer or reduce your | | | | 6. Structured Sale |
| capital gains tax: | | | | This is a type of installment sale that allows sellers to |
| 1. Tax Loss Harvesting | | | | defer any recognition of gains on the sale of real |
| This is where you sell your securities at a loss. The | | | | estate. |
| purpose is to offset your capital gains for months, or | | | | There are advantages and disadvantages to the |
| even years, into the future. | | | | above six methods. It is important that before you |
| 2. Charitable Trust | | | | utilize any of these deferment methods that you |
| Giving equity to a charity will allow you to reduce your | | | | research everything you can about it. Which one you |
| taxes.. | | | | decide to use will be based on your own individual |
| 3. Installment Sale | | | | circumstances. |
| If you except payments for your sale in installments | | | | |